ZTE faces US export restrictions over Iran surveillance system deal
Foreign Ministry in Beijing opposes sanctions on Chinese enterprises
ZTE, China’s largest listed telecommunications equipment manufacturer, could face severe component supply problems from this month, based on a reported plan by the US government to slap export restrictions on the company for alleged violations of longstanding American trade sanctions on Iran.
Shenzhen-based ZTE requested the suspension of trading in its Hong Kong-listed shares on Monday pending the release of information about the proposed action by the US Department of Commerce.
“ZTE will continue with normal operations while conducting comprehensive assessments and will be actively communicating with stakeholders,” its said.
The Foreign Ministry in Beijing expressed anger on Monday at the US Commerce Department’s plans.
“China is opposed to the US citing domestic laws to place sanctions on Chinese enterprises,” Foreign Ministry spokesman Hong Lei told a daily news briefing. “We hope the US stops this erroneous action and avoid damaging Sino-China trade cooperation and bilateral relations.”
The United States imposed restrictions on trade with Iran from 1979 following the seizure of the American embassy in Tehran. They are separate from international sanctions on Iran over its nuclear programme that were lifted in January.